Weighted average: Difference between revisions
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''Statistics''. | |||
A weighted average is an average calculated using appropriate weighting factors, often market values. | A weighted average is an average calculated using appropriate weighting factors, often market values. | ||
For example, the weighted average of 10% and 3.6%, weighted by market values of $75m and $25m respectively, is: | |||
(10% x $75m) + (3.6% x $25m) / ($75m + $25m) | |||
= 8.4% | |||
Revision as of 20:58, 16 March 2018
Statistics.
A weighted average is an average calculated using appropriate weighting factors, often market values.
For example, the weighted average of 10% and 3.6%, weighted by market values of $75m and $25m respectively, is:
(10% x $75m) + (3.6% x $25m) / ($75m + $25m)
= 8.4%
